Abstract
The European Monetary Union (EMU) faces numerous economic and political challenges. Among them is the likelihood that the economies of member countries will respond differently to the (common) actions of the European Central Bank. This paper seeks to draw lessons for the EMU by studying the size and sources of differential responses to monetary policy shocks in the U.S. states and regions.1
We thank Jürgen von Hagen, Rick Lang, and Christopher Waller for helpful suggestions. We also thank Sally Burke for helpful editorial comments and James DiSalvo and Mike McLaughlin for excellent research assistance. The opinions expressed here are solely those of the authors and do not necessarily represent those of the Federal Reserve Bank of Philadelphia, the Federal Reserve System, the University of Pennsylvania, Villanova University, or the University of Bonn.
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Carlino, G.A., DeFina, R. (2000). Monetary Policy and the U.S. States and Regions: Some Implications for European Monetary Union. In: von Hagen, J., Waller, C.J. (eds) Regional Aspects of Monetary Policy in Europe. ZEI Studies in European Economics and Law, vol 1. Springer, Boston, MA. https://doi.org/10.1007/978-1-4757-6390-4_2
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DOI: https://doi.org/10.1007/978-1-4757-6390-4_2
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